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LEEDS DIOCESAN BOARD of FINANCE Company Number - 8823593 Registered Charity Number – 1155876

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LEEDS DIOCESAN BOARD of FINANCE Company Number - 8823593 Registered Charity Number – 1155876 ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2017 LEEDS DIOCESAN BOARD OF FINANCE Company number - 8823593 Registered charity number – 1155876 LEEDS DIOCESAN BOARD OF FINANCE TABLE OF CONTENTS Page Numbers Legal Objects 3 Strategic Report: Strategic Aims 4 Objectives for the year 5 Activities and Achievements in the year 6 Future plans 8 Financial review 9 Principal risks and uncertainties 12 Structure and Governance 13 Trustees Responsibilities 19 Administrative details 20 Independent Auditors Report 22 Statement of Financial Activities 24 Income and Expenditure Account 25 Balance Sheet 26 Cash Flow Statement 27 Notes to the Financial Statements 28 2 LEEDS DIOCESAN BOARD OF FINANCE TRUSTEES REPORT 2017 The Trustees, who are also Directors for the purposes of company law, present their annual report, together with the audited financial statements, for the year ended 31 December 2017. The Directors/Trustees are one and the same and in signing as Trustees they are also signing the strategic report sections in their capacity as Directors. This combined report satisfies the legal requirements for: A Directors’ Report of a charitable company; A Strategic Report under the Companies Act 2006; and A Trustees’ Annual Report under the Charities Act 2011. LEGAL OBJECTS The Diocese of Leeds is one of 41 Dioceses which cover the whole of England. The Diocese covers West Yorkshire, the western part of North Yorkshire, and parts of South Yorkshire, Lancashire and County Durham. The Diocese comprises five Archdeaconries which form the Episcopal Areas. It covers an area of around 2,425 square miles, housing a population of around 2,642,400. The Diocese has 656 church buildings in 460 parishes with 356 stipendiary clergy, 115 self-supporting clergy and 423 clergy with Permission To Officiate (“PTO”) along with 241 Readers, 97 authorised lay pastoral minsters and 50 chaplains. The Diocese also has 242 Church schools and academies. The Leeds Diocesan Board of Finance (“LDBF”)’s principal objective is to promote, assist and advance the work of the Church of England in the Diocese of Leeds by acting as the financial executive of the Leeds Diocesan Synod. The LDBF has the following statutory responsibilities: i. The management of glebe property and investments to generate income to support the cost of stipends arising from the Endowment and Glebe Measure 1976; ii. The repair of benefice houses as the Diocesan Parsonage Board under the Repair of Benefice Buildings Measure 1972; iii. The management of investments and the custodians of assets relating to church schools under the Diocesan Board of Education Measure 1991; and iv. The custodians of permanent endowment and real property assets relating to trusts held by Incumbents and Archdeacons and by Parochial Church Councils (“PCC”) as Diocesan Authority under the Incumbents and Churchwardens (Trusts) Measure 1964 and the Parochial Church Councils (Powers) Measure 1956. The strategic priorities of the company are established by the Diocesan Synod in communication with Deanery Synods, PCCs and the Bishop of Leeds (in respect of his responsibility for the provision of the cure of souls). To this end, significant time and effort is committed to communication between and with these bodies, as well as with the church nationally. 3 LEEDS DIOCESAN BOARD OF FINANCE STRATEGIC AIMS The main role of the LDBF is to identify and manage the financial aspects of the provision of ministry within the Diocese, so as to provide appropriate personnel and financial resources to assist the Diocesan Synod, Bishop’s Council, deaneries and parishes to further the mission and strategic priorities in the Diocese. LDBF’s principal activity is to promote, facilitate and assist with the work and purposes of the Church of England for the advancement of the Christian faith in the Diocese of Leeds. LDBF’s strategy for achieving its objectives is to develop and maintain a sound financial structure to enable it to continue supporting the clergy through the payment of stipends, managing parsonages and other ministerial housing, and also by providing other facilities and resources in support of the ministry of both clergy and lay people in parishes across the Diocese. Diocese of Leeds Strategy Sharing a vision for: Confident Christians Growing churches Transforming communities Characterised by: Loving Living Learning Enabled by: Clergy and lay together Purposeful resourcing Dynamic partnerships Following the formation of the Diocese of Leeds in 2014, priority was given to building appropriate structures, making key appointments and developing a shared vision. Attention then turned to further development of diocesan strategy. Bishop Nick has asked a working group, chaired by Bishop Paul Slater, to facilitate this process. The Bishop’s Strategy Group set up three working sub-groups focused on the key areas identified to enable the vision; Clergy and Lay Together, Purposeful Resourcing and Dynamic Partnerships. These three working groups have produced reports and the Strategy Group has developed key themes and priorities, in the knowledge that overall expenditure needs to be addressed if a balanced budget is to be achieved. The goals and objectives of a five-year strategy remain a work in progress, with further work to be done on the final targets and initiatives, as well as prioritisation and timing. However, the initial strategic goals and objectives for 2019-2024 are: 4 LEEDS DIOCESAN BOARD OF FINANCE Goal 1: Thriving as a distinctive diocese whose culture is shaped by a shared vision and values Congregations, clergy, staff, schools and chaplaincies understand that Christ is our model for Loving, Living, Learning. They are comfortable and energised by what it means to be part of the Leeds Diocese, and see the diocese as “us” rather than “them”: a body of maturing Christians with a shared story to tell and a distinctive part to play, working in a diocese that, because of its scale, is making a unique contribution to building the Kingdom of God, while working at a local level in every parish and Episcopal Area. Goal 2: Reimagining ministry In the context of a shared understanding of what it is to be the Church of England in this diocese, a varied range of models of ministry is flourishing, that are appropriate to context while being faithfully and imaginatively Anglican. All clergy and lay ministers are working in fruitful clergy/lay partnerships, and our churches are growing. Goal 3: Building leadership pipelines We have an identified process to attract, train and continuously develop ordained and lay leaders, from nurture to discerning vocation to accreditation, in a way that ensures they leave something behind if/when they move on. Clergy and lay are motivated to take responsibility for their own development, and are provided with diverse opportunities for doing so. Goal 4: Nurturing lay discipleship All members of our congregations are maturing in their calling as Christians and take seriously the five marks of mission. Nurture courses and small group participation are the norm, people are supported to express their faith outside church, and all is intentionally underpinned by prayer. Goal 5: Growing young people as Christians Children and young people are part of the worshipping community of every church and cathedral and are maturing in their faith. OBJECTIVES FOR THE YEAR In response to the above strategic aims the following objectives were set for this and subsequent years. These objectives are: To ensure an Anglican presence in every parish; To provide resources for people of all ages and at all stages of their spiritual journey to grow in understanding of the Christian faith; To promote the use of every church building for worship and other activities other than formal worship; To establish a personal contact with every church educational establishment in the Diocese and to provide practical support on a regular basis; To develop strategies to grow churches in the Diocese and access funding to support these initiatives; To encourage active local debate and ensure that Christian voices are heard in all areas of public life; and To support parishes to identify the areas of need within their community and work together with other organisations to deliver a positive contribution to the spiritual and physical health. Through carrying out these objectives and in promoting the whole mission of the church (pastoral, evangelistic, social and ecumenical) the Trustees are confident (having had regard to Charity Commission guidance) that LDBF delivers public benefit through community engagement, resourcing education and supporting those in need both spiritually and physically. 5 LEEDS DIOCESAN BOARD OF FINANCE ACTIVITIES AND ACHIEVEMENTS IN THE YEAR Support for the Diocese's mission and strategic aims is delivered by the Bishop and his senior team through the LDBF Board. The team is supported by a number of key advisers including Legal, HR, Finance, Education, Property and Safeguarding. The role of those employed to work in the central support of the Diocese is largely to: support and enable parishes in their engagement with their communities; advise and support the Synod, Leeds Board, Bishop’s Staff Team and Board of Education in the formation of policy for the Diocese; support church schools, further and higher education institutions in terms of governance, religious education and collective worship, and buildings development; ensure suitable provision and training for the safeguarding of children and vulnerable adults; train and advise those holding positions of office and leadership in the Diocese; support the discernment, selection, recruitment, and training for those entering licensed and authorised ministry; undertake the statutory work of the Church of England in the Diocese of Leeds and the statutory work of the LDBF; and engage in the work undertaken nationally and internationally through support and representation on national boards, committees and working groups. Having experienced a significant amount of change over the past few years, 2017 was a year when the central team were able to begin building on those foundations.
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